A contradictory situation has developed at RAO UES of Russia.

On one hand the operational income is decreasing, but on another hand, company has a good cash reserve and receives good interest income.

In any case, the point of the valuation is the free cash flow and potential dividends that can be paid.

And here we also face a contradiction, since the cash reserve allows us to pay large dividends, and the strict FCF shows beautiful numbers, but the real dividends are small, and the latest FCF for the 24th year is falling sharply.

Figure 1.

Thus, conducting an assessment at this time is not an easy task.

I think it's better to take the average FCF as a basis for evaluation and somehow continue it in the future.

Figure 2.

Then the amount for seven future years put on chart of stock exchange price.

Then we plot the sum for the next seven years on the stock exchange price chart.

Figure 3.